Soak the mushrooms in 2 cups water for 1/2 hour.
Drain, saving the water for a later use in soup.
Chop the mushrooms and set aside.
Heat a 2-quart heavy saucepan with a cover and add the butter and onion.
Saute until clear and then add the rice.
Saute until the rice begins to turn very light brown, and pour in 1 1/2 cups of the boiling broth, along with the mushrooms.
Cover and let simmer for 10 minutes.
Add the remaining boiling broth, the Italian Gravy, sherry, salt, and pepper.
Cover and simmer until the broth is absorbed, about 10 more minutes.
Stir in the grated cheese and parsley, and serve.